San Jose Multifamily Report – March 2022
Despite a slower start in the recovery, San Jose rent growth has reached double digits.
San Jose ended 2021 on a positive note. Rent growth peaked in August and started to cool off toward the end of the year, clocking in at 0.1 percent on a trailing three-month (T3) basis through January. The average rate reached $2,832, up 10.1 percent year-over-year and significantly above the $1,604 U.S. figure. While recovering later than most of the country, Silicon Valley did not lose its steam. Month-over-month, it recorded the highest jump among major markets tracked by Yardi Matrix, up 1.2 percent in January.
As of November, San Jose’s employment gains reached 4.2 percent, 40 basis points below the national figure. The city added 48,000 positions in the 12 months ending in November 2021. The unemployment rate clocked in at a tight 3.0 percent as of December, Silicon Valley’s best figure since March 2020. Besides Google’s massive plans for downtown, Boston Properties also received approvals for a mixed-use development, The Almaden Office Project, which is estimated to generate some $4.3 million annually in taxes for the city.
Multifamily development also hit a high note in 2021, with 5,901 units delivered, nearly double the metro’s five-year average. San Jose had an additional 8,288 apartments underway going into 2022, the vast majority of which are aimed at Lifestyle renters.